KT to provide technologies for car insurance

Models promote KT’s Internet of Things-based car information collecting device and a driving habit analysis application “k-ubicar” in Seoul, Tuesday. The telecom company said it will work with Heungkuk Fire & Marine Insurance to test-run the use-base insurance program. / Courtesy of KT

By Yoon Sung-won

KT, the nation’s second-largest mobile carrier, said Tuesday it will move into the automotive technology and services business in cooperation with local insurance companies.

The telecom company said it will provide big data analysis and the Internet of Things (IoT) technologies to collect information on automobiles to Heungkuk Fire & Marine Insurance, aiming at launching use-base insurance (UBI) plans in the Korean market.

“We expect that the UBI plans will help drivers have safer driving habits and contribute to cutting the social expenses caused by traffic accidents,” KT GiGA IoT Business Vice President Kim Seok-joon said. “Beside UBI, KT will continue to devise diverse systems for unmanned automobile technologies, which will be the core of smart car development.”

UBI refers to a new type of car insurance product that reflects the possibility of a car accident calculated using the data on user’s driving habits, collected by big data technology. In UBI, policyholders with a safer driving habit can benefit from discounts in their monthly premiums.

For this, KT uses an IoT-based device called on-bard diagnostics (OBD) attached to cars to collect driving information such as mileage, average driving speed and frequency of sudden stops. The information, gathered at KT’s server through its mobile network, is used to project and assess the possibility of an accident and to conduct integrated automotive management, the company said. Users can also check the information using a mobile application provided by KT.

The telecom company said it will seek 10,000 beta-testers to develop UBI.

The move comes as company Chairman Hwang Chang-gyu seeks new business opportunities tapping into KT’s mobile network, big data analysis platform and IoT technologies.

Aiming at the future smart car market, KT said it has worked with Korea Insurance Development Institute to analyze driving information of its 3,500 business-purpose cars since 2014. The company said the information will contribute to the development of the automotive big data analysis algorithm for UBI.

“The UBI service is expected to lower the car accident rate here and help us set more reasonable insurance premiums based on driving information collected by the big data platform,” an official at Heungkuk Fire & Marine Insurance said.

Meanwhile, KT said it has also signed an agreement with Meritz Fire & Marine Insurance to jointly develop insurance policies based on big data analysis and telecom technologies. Under the agreement, Meritz will also participate in the telecom company’s UBI business.